In every business, an employer would want to make it clear to their employees that they can be terminated at any given time should they break any important company policies, fail to meet the performance standards of the business, or if they do anything that could potentially harm other employees or the entirety of the company.
However, employees also want to make sure that they let these employees know that they’ll only be terminated in the event that there’s a valid reason to do so. To ensure that these employees are able to fully understand the terms of termination within your company, this would mean that you’re going to have to come up with a termination agreement and this article will teach you how to create one.
When you start drafting the employee termination agreement, there are a ton of things that you’re going to have to think about to ensure that the terms of termination are fair. Because no employee would want to sign a termination agreement that they’ll see is too unreasonable. Also, you have to make sure that when you’re creating this agreement, you’re as detailed as possible so that you can point out that you and your company have every right to terminate an employee when the situation calls for it. So when you start creating your termination agreement, you’re going to have to make sure that the following are within the document:
As you’re coming up with the termination agreement, you have to be specific with as to who the agreement is meant for. This would mean that you’ll need to place the employee’s complete name into the document, the name of the company that he/she will be employed into, the job title that the employee will be taking up, and possibly even his/her job description. The reason for doing this is to ensure that it clearly shows that it’s the very same employee who signed the agreement and he/she has read the terms. Also, you’ll want to place in the date as to when it was made and signed just for legal verification. Make sure that there isn’t a single error when it comes to the basic information that you’re going to place. You may also see sample agreement templates.
You just can’t terminate an employee simply because you don’t like him/her. You’re going to need a valid reason for you to be able to do that. When you’re drafting the reasons as to when it’s acceptable for the employee to be terminated, you’re going to have to be as specific as possible. Because if you miss out on even one violation or problem that the employee might cause during agreement drafting, then that employee may simply state that your agreement form does not specify that he/she will be punished for the action he/she has done. To ensure that you’re able to terminate an employee for causing repeated problems or making a huge on in your company, then here are some examples of valid reasons for termination.
You’ll definitely want to have this in the termination agreement as you do not want the terminated employee to walk away with anything that belongs to your company. To create a statement that any property that the company owns that is in the possession of the employee must be returned as soon as possible should the employee be terminated. Be very clear about this because, in the event that the employee still has hold of company property, there’s always a chance that he/she still has access to vital company secrets, and that’s something you want to prevent. So what you can do is a state that the employee must provide a list of all company property that’s under his/her possession each time he/she is required or requests to make use of any of them. f you would like, you can be specific by making a statement such as “these include, but are not limited to, the following…” where you then provide multiple examples of the different types of company property that may be in the possession of the employee. You may also like business agreement templates.
If the employee has accrued any vacation time, then that would mean that you’re going to have to pay for the any of the time that the employee has accrued. However, the law and the employee’s position may change this. If the employee is just working part-time or was simply hired as a contractor, then you don’t necessarily have to pay for any unused vacation time. Again, go through your country’s laws just to be sure. You may also see sample employment agreement templates.
State that the employee will be paid what he/she is owed by the company. Also, state the methods as to how the employee will receive his/her final pay as well as the amount that he/she will receive. You may also see employee agreement templates.
If you would like to learn more on how to create a termination agreement or anything related to this particular topic, then all you have to do is go through any of our available articles on our site until you are able to gather the information that will benefit you and your business. You may also see employment agreement templates.